Erratic movement was witnessed in the currency market last week as the high demand for dollars forced the rupee to surrender its previous week's gains versus the US currency, money market experts said.
While in the open market the rupee lost seven paisa against dollar for buying and selling at Rs 60.40 and Rs 60.45, respectively, it moved both ways in the interbank market, maintaining stable trend after picking up six paisa for buying and selling at Rs 59.99 and Rs 60.01, respectively.
However, the rupee gained 30 paisa vs euro at Rs 76.87 and Rs 77.00, respectively.
In the early days of the week, the rupee managed to gain modestly vs dollar despite higher demand for US currency, experts said. There was easiness in inflows of dollars, so the rupee looked forward, they noted, but since the importers' rush for dollars increased, the rupee started showing some weakness.
It is generally noted that towards the end of a fiscal year, the demand dollars goes up to clear the import bills.
Last week, the State Bank of Pakistan (SBP) Governor hinted that the rupee would be able to stand with the world's leading currency (dollar) due strong position of the country's foreign exchange reserves.
Focussing on rupee firmness in the coming days, some economists said that the dollar's continued fall the world over might also help the rupee to hold its firmness against other currencies of the globe.
Market observers were of the view that a weaker dollar might help in narrowing the US trade deficit in the near future, but most of them did not foresee significant rise in the dollar value in the near future
WORLD SCENARIO: In the world markets early in the week the dollars failed to gain strength as the yuan was still on the rising trend.
The dollar was easier as the US current account deficit was in focus.
Pound sterling touched highs during the week and was quoted at Rs 113.90 and Rs 114.00. At the final session, the dollar improved slight versus leading currency of the world.
INTERBANK RATES: On Monday, the rupee lost three paisa vs dollar for buying at Rs 60.05 and 4 paisa for selling at Rs 60.06, respectively.
On Tuesday, the rupee held its prevailing levels at 60.06 and 60.07, respectively.
On Wednesday, the rupee gained against dollar for buying and selling at Rs 59.90 and Rs 60.00, respectively, dealers said.
On Thursday, the rupee shed six paisa at Rs 59.96 and Rs 59.97 and on Friday, the rupee was down against the dollar for buying at Rs 59.96 and one paisa for selling at Rs 59.98 in the interbank market.
At the weekend, the rupee gave up it firmness, shedding three paisa versus dollar for buying and selling at Rs 59.99 and Rs 60.01.
OPEN MARKET RATES: On May 15, the rupee lost 14 paisa in relation to dollar for buying and selling at Rs 60.34 and Rs 60.38, dealers said. The rupee, however, gained 16 paisa versus euro for buying and selling at Rs 77.20 and Rs 77.30, respectively.
On May 16, the rupee lost seven paisa versus dollar for buying and selling at 60.40 and 60.45, respectively, dealers said. The rupee gained 25 paisa versus euro for buying and selling at Rs 76.95 and Rs 77.05, respectively.
On May 17, the rupee shed modestly at 60.42 and 60.49 and the rupee lost sharply by 50 paisa vs euro to Rs 77.45 and Rs 77.55, dealers said.
On May 18, the rupee rose by five paisa versus dollar for buying and selling at 60.38 and 60.42. On May 19, the rupee recovered five paisa against dollar for buying at 60.33 while it gained four paisa at 60.38.
The rupee, however, slipped 30 paisa for buying and selling against euro at Rs 77.00 and 77.10, dealers said.
On May 20, the rupee lost seven paisa against the dollar for buying at 6.40 and 60.45, versus the euro, the rupee shed 13 paisa for buying and selling at Rs 76.87 and Rs 77.00, dealers said.